Bankruptcy law allows some of your assets to be exempt while filing for bankruptcy, allowing you to keep some amount of your property.
Some people do not file for bankruptcy because they believe they have to give up all of their assets. But, an individual can exempt some property from bankruptcy. There is no limit for debt in Chapter 7 Business Bankruptcy.
What is included in a household good in bankruptcy?
When you file for bankruptcy, it does not mean you have to start again with nothing. You can always keep some of your properties which are mentioned below.
- Your home, up to $30,000 of equity in most cases or $60,000 in a few instances.
- Trading tools up to $2,000.
- Your car, up to $3,000 equity.
- Prescribed health aids
- Life insurance where a child or spouse is the beneficiary.
- Retirement plans.
- If the home exemption is not wholly utilized, up to $5,000 wildcard exemption.
- College savings up to $20,000.
If a married couple owns joint assets and files jointly, then the exemptions will be doubled. If the individual files bankruptcy and owns an asset together with another person, then the debtor’s interest is considered and not the non debtor’s interest.
In chapter 7 bankruptcy, the debtor can keep their aggregate interest up to $5,500 and 1,000 for the dependent of the debtors, not exceeding $4,000 for dependents. The exempt property may have household furniture, clothing, household goods, books, pets, appliances, or musical instruments. These items will be held primarily for the debtor’s household, dependent, or family use. The amounts might be different for a married couple if they file a joint bankruptcy.
Household items you cannot keep
Household items do not include electronic entertainment equipment with a market value of more than $500, antique items with a market value of more than $500, jewelry not more than $500, vehicles, boats, motorized recreational devices, watercraft, or aircraft.
When you feel pressured by the loan company, contact a lawyer who will be on your side and handle the overwhelming loans and can keep your household items. You also have the option to keep things that cannot be avoided.
Do not let uncertainties prevent you from considering the options regarding bankruptcy proceedings. Contact an experienced lawyer in such a case. They will discuss your legal options and answer every question so that you can control your finances.